Document de travail

Why Is Exclusivity in Broadcasting Rights Prevalent and Why Does Simple Regulation Fail?

David Martimort et Jérôme Pouyet

Résumé

Pay-TV firms compete both downstream to attract viewers and upstream to acquire broadcasting rights. Because profits inherited from downstream competition satisfy a convexity property, allocating rights to the dominant firm maximizes the industry profit. Such an exclusive allocation of rights emerges as a robust equilibrium outcome but may fail to maximize welfare. We analyze whether a ban on resale and a ban on package bidding may improve welfare. These corrective policies have no impact on the final allocation but lead to profit redistribution along the value chain.

Mots-clés

Broadcasting rights; Upstream and downstream competition; Exclusivity;

Codes JEL

  • L13: Oligopoly and Other Imperfect Markets
  • L42: Vertical Restraints • Resale Price Maintenance • Quantity Discounts

Référence

David Martimort et Jérôme Pouyet, « Why Is Exclusivity in Broadcasting Rights Prevalent and Why Does Simple Regulation Fail? », TSE Working Paper, n° 24-1501, janvier 2024, révision juillet 2024.

Voir aussi

Publié dans

TSE Working Paper, n° 24-1501, janvier 2024, révision juillet 2024